The important dates in connection with a cash dividend of 48,000on a corporation
ID: 2458153 • Letter: T
Question
The important dates in connection with a cash dividend of 48,000on a corporation’s common stock are July 16, August 15, andSeptember 30. Journalize the entries required on each date
Date
Account Name
Debit
Credit
7/16
8/15
9/30
On August 3 Waterways Corporation issued for cash45,000 shares of no –par common stock (with a stated value of$100) at $128. On September 22, Waterways issued at par 2,000shares of 1%, $75 par value preferred stock for cash. OnNovember 4, Waterways issued for cash 3,000 shares of 1%. $75par preferred stock at $80.
Journalize the entries to record the august 3,September 22, and November 4 transactions.
Date
Account Name
Debit
Credit
8/3
9/22
11/4
Date
Account Name
Debit
Credit
7/16
8/15
9/30
Explanation / Answer
Date
Details
Debit
Credit
Date
Details
Debit
Credit
16-Jul Declaration date Retained Earnings 48,000.00 Dividends Payable 48,000.00 15-Aug Record Date No entry . Stock holders eligible for dividend payment are identified on this date 30-Sep Payment Date Dividends Payable 45,000.00 Cash 45,000.00 3-Aug Cash 5,760,000.00 Common Stock - No par Value 4,500,000.00 Capital in excessof Stated Value 1,260,000.00 22-Sep Cash 150,000.00 Preferred Stock 150,000.00 4-Nov Cash 240,000.00 Preferred Stock 225,000.00 Capital in excess of ParValue 15,000.00Related Questions
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